Numerous new-age businesspeople and investors from India are seeking various ways to build their wealth, and the cryptocurrency industry is becoming more and more well-known on a global scale. The new digital currency is probably going to be used more frequently in transactions in the future years. Therefore, establishing a cryptocurrency firm in Dubai is a no-brainer. According to the Global Citizens Report, 5,600 millionaires moved to the United Arab Emirates between 2019 and 2021, increasing total private wealth thereby $46 billion. An influx of Russian oligarchs is expected to amplify this trend. According to research from consultant Knight Frank, over 25% of millionaires in the Middle East have already invested in a cryptocurrency.
The UAE has gained popularity as more free zones now allow businesses to engage in bitcoin trading, crypto asset management, and related activities. As cryptocurrencies gain popularity in the United Arab Emirates, there is a lucrative potential to get involved in cryptocurrency trading, holding, exchanges, and a variety of other new business ventures. A&A Associates helps you in how to set up a Crypto Business in Dubai, UAE, get in contact with us.
What is Crypto Currency?
Digital money created for online use is called cryptocurrency. It does not have a central regulatory body and instead uses a decentralized system for transactions. Crypto transactions can be made by anybody, anywhere because cryptocurrency is administered via peer-to-peer networks of systems. Following the establishment of a cryptocurrency firm in Dubai, you can gain several advantages. We go over a few of these benefits below:
- Brand’s Standout Quality
Companies that accept bitcoins are frequently in the news. By stating that your organization accepts cryptocurrencies, you stand out from the competition right away. Additionally, the Bitcoin user community is fervent. This market will be eager to support and purchase from a business that is not hesitant to try new payment options.
- Minimal Transactional Costs
Cryptocurrency drastically reduces a business’ operating expenses. Payments made using cryptocurrency are free of service charges. For businesses in Dubai, this makes it a particularly advantageous transaction option.
Furthermore, regardless of the sender’s and recipient’s locations, transactions are carried out globally and in close to real-time. Due to the lack of international restrictions, crypto transfers are much less expensive than regular transactions.
- Improved Safety
Credit cards have fostered the growth of the internet business world. Credit cards have additionally made it possible for online enterprises to interact with clients wherever they may be by enabling them to do purchases virtually. Crypto transactions are irreversible, which gives users a sense of confidence when making overseas payments.
- Understanding the Blockchain
Cryptocurrencies are more popular. Blockchain technology may also gain popularity if the current trends continue. Early adopters will therefore have a significant advantage over those who arrive later, as with any emerging phenomenon.
- Information Security
Every year, stories about a major firm losing client data make headlines all around the world. Due to the lack of personally identifiable information, customers are susceptible to identity fraud, which could damage their hard-earned income. The improved anonymity of the payment procedure is thus one of the most alluring advantages of cryptocurrencies. The buyer also has the option of disclosing as little or as much information as they like. Call us now to Set up a Crypto Business in Dubai.
Requirements to Get a Crypto License in Dubai
The UAE government has established a few eligibility requirements that a person must meet before submitting their application to obtain a cryptocurrency license in the Emirates. This is done for regulatory purposes. The following criteria must be met in order to obtain a cryptocurrency license in the UAE:
- Get the commercial license application form from the Department of Economic Development (DED) in Dubai first, and then present copies of each partner’s passport.
- Your cryptocurrency wallet history should be completely free of any fraudulent activity or transactions.
- Post that, and throughout at least six months of business operation, make sure that all of your financial resources and operating costs are readily visible.
- All of your cryptocurrency assets must be integrated with the departments of the “UAE financial free zone” that are approved by the UAE government.
- The final step is submitting your complete business plan to the appropriate government department or authority.
Steps to Set up a Crypto Business in Dubai
By following these procedures, young investors and international crypto enthusiasts can Set up a Crypto Business in Dubai:
- Finalize Your Business Name
- Select your preferred jurisdiction and apply for a cryptocurrency license there
- Follow all compliance guidelines
To make it simpler for you, we go into detail about each step here:
- Decide on a name for your business.
Finding a company name that is free of offensive words or well-known trade names is the first step. It should also be straightforward and memorable. Additionally, if you want to utilize someone’s full name as your company trademark, do not use a nickname.
- Select the Ideal Jurisdiction
Choose whether you want to launch a cryptocurrency business on the mainland or in a Dubai-free zone. Keep in mind that there are no currency restrictions in the free zone. You can also benefit from the income and repatriation. On the other side, a location on the mainland allows you easy access to all of the UAE’s Emirates.
- Obtain a license for using cryptocurrencies.
After taking the aforementioned into account, you can apply for a cryptocurrency license in Dubai, United Arab Emirates. Additionally, you have the option to transmit this application directly to the relevant governing authority. However, managing so many things by themselves might get hectic for an ex-pat. As a result, it is preferable to work with crypto business experts like A&A Associates.
- Comply with all compliance requirements
In Dubai, crypto trading is regulated in the same way as other forms of financial transactions. As a result, you must comply with anti-money laundering laws and possess the necessary license. Any negligence in this area could have an adverse effect on business.
Zones Providing Cryptocurrency License
You need to obtain a UAE cryptocurrency license before opening a cryptocurrency business in Dubai. Three of the free zones are currently offering crypto licenses around the nation. They are :
- Abu Dhabi Global Market ( ADGM )
- Dubai Airport Free Zone ( DAFZA )
- Dubai Multi-Commodities Center ( DMCC )
- Dubai Multi-Commodities Center ( DMCC )
The DMCC is very amenable to the inclusion and implementation of cryptocurrency. In Dubai, they provide cryptocurrency licenses for aspiring business owners and entrepreneurs. To receive their cryptocurrency license in the Emirates, people travel from all over the world to DMCC. The DMCC cryptocurrency license in Dubai permits you to do commercial operations such as offering services connected to cryptocurrencies, trading, storing, managing, developing software and apps related to cryptocurrencies, and much more. Additionally, you can provide consultation and advisory services with the city’s bitcoin license. A new cryptocurrency center has been established by DMCC, and it intends to serve as the focal point for all blockchain-related activities in Dubai.
- Dubai Airport Free Zone Authority ( DAFZA )
The addition of cryptocurrency was easily accepted, and they entered into an arrangement with ESCA (The UAE Securities and Commodities Authority) that helped them to encourage new businesses and entrepreneurs who wished to engage in fantastic business ventures related to cryptocurrency. They helped local firms by granting cryptocurrency licenses in Dubai. Companies can use bitcoin assets for carrying out certain commercial activities by getting a cryptocurrency license from the DAFZA. Additionally, they can provide services to international investors traveling to Dubai from all around the world. DAFZA has a robust regulatory structure that makes it easy for businesses operating inside its borders to operate. They are moving forward with their plan to increase the adoption and growth of virtual currencies like Dogecoin, Bitcoin, Ethereum, and others.
- Abu Dhabi Global Market (ADGM)
Crypto assets that are subject to Financial Services Regulatory Authority (FSRA) regulation are eligible to operate in Abu Dhabi Global Market (ADGM) The regulatory organization in charge of all cryptocurrency-related assets in the United Arab Emirates is called FSRA. It is currently the only legitimate government organization in the UAE with a comprehensive regulatory framework for crypto licensing. For the benefit of both small and large businesses in the Emirates, ADGM and FRSA have produced a guideline about the use of cryptocurrency licenses in the nation.